Federal Government Introduces Revised Basic Pay Scales 2026 and New Relief Allowance for Public Servants

Restructuring of Federal Salary Scales

The Ministry of Finance has released Office Memorandums announcing the implementation of the Revised Basic Pay Scales (BPS-2026) for public sector personnel. Formally published on July 21, 2026, the updated scale structure replaces the BPS-2022 framework with retrospective effect from July 1, 2026. The measure consolidates earlier temporary relief benefits directly into baseline pay while updating allowances across all grades.

Coverage and Eligible Workforce

The revised pay structure applies across grades BPS-1 through BPS-22. It covers federal civil employees whose salaries are drawn from civil and defence estimates, alongside contingent paid personnel and contract employees hired on standard terms against civil positions.

Consolidation into Core Basic Salary

Under the new structure, previous interim relief allocations: specifically the 15 percent allowance from 2022 and the 10 percent allowance from 2025: have been integrated directly into basic pay. This consolidation elevates starting basic pay across all brackets. For example, entry-level basic pay for BPS-1 increases from Rs13,550 to Rs16,280, while entry-level pay for BPS-22 rises from Rs122,190 to Rs146,770. For staff serving as of June 30, 2026, salary adjustments will be made using point-to-point pay fixation, while annual increments will continue on December 1.

New Relief Allowance and Revised Rate Structures

Alongside the consolidated scale, the government introduced the Ad-hoc Relief Allowance-2026, set at 7 percent of running basic pay. This allowance is subject to income tax and remains payable during leave as well as leave preparatory to retirement (LPR). However, it will not be computed as part of pension, gratuity, or house rent calculations.

In addition, conveyance allowances across BPS-1 through BPS-22 have been expanded by 50 percent. Revised monthly conveyance allocations are set at Rs2,678 for BPS 1: 4, Rs2,898 for BPS 5: 10, Rs4,284 for BPS 11: 15, and Rs7,500 for BPS 16: 22.

Allowance Caps and Implementation Guidance

House rent allowance and other percentage-based special allowances will remain capped at the exact levels admissible on June 30, 2026. To handle implementation queries and address procedural issues, an Anomaly Committee has been set up within the Regulations Wing of the Finance Division.

Required Administrative Action

Employees who prefer to remain under the BPS-2022 salary structure must submit an irrevocable written option to their designated ministry, department, or Drawing and Disbursing Officer (DDO) within 30 days of the notification. Those who do not submit a written election within this timeframe will automatically be shifted to BPS-2026.